Whether you are selling your grow operation, processing operation, marijuana retailer, or cannabis micro facility; selling your marijuana related business is very similar to selling any small business. The process is very involved. One mistake made by business owners is not planning ahead. This can make you miss your window of opportunity. Also, the enlistment of a cannabis real estate broker and/or attorney is highly recommended as it can be a very complex process.
Having up to date records, a detailed history of the cannabis business and current financial statements are a key aspect to preparing the sale of your small marijuana related business. This will make the value determination process smoother as well as give an added confidence to your potential buyers. Generally speaking the value of your business is based on a multiple of the business’s profit as well as the current market of the cannabis industry. For this reason, it is essential to have a thorough and accurate picture of your finances. This will include tax returns for the past three or four years. If you have an accountant they should be able to help you prepare the financial statements needed. There are many other factors to consider when determining the value of your marijuana based business. Having a professional company such as Bricks + Mortar Cannabis Real Estate prepare a valuation, detailed explanation of the business’s worth, will give you a solid gauge of the value of your business. They have an extensive collection of cannabis-related real estate data, innovative strategies, and laser focus on the niche market has kept them in an industry position that few can match.
Finding the right marijuana real estate broker to assist in selling your business is critical to your success. Most companies will accumulate a higher valuation when they work with a broker who can bring strategic insights to the process and industry. The marijuana industry is no different. Bricks + Mortar Group is a real estate development company that specializes in the cannabis industry. With extensive experience in the Michigan marijuana market, you can be confident that their team has the knowledge, data, and expertise needed to be successful in this niche industry. All of their staff are trained in cannabis real estate and know the most important attributes to highlight, and what steps to take to make your property more valuable.
Now that you have your valuation and have selected a broker the next step would be to put together a summary of your cannabis business. This should include your business operations, management, products and/or services and competitive advantages. Your summary will help buyers compose offers worth considering. Remember, when it comes to promoting your business your broker will need you to give them an accurate picture of your business. The right broker will have an insight into the industry however, no one knows your business like you do. For example, if you are a cannabis cultivator the broker will know what the most important information would be for a potential buyer, but only you have that information.
It can be challenging to find the right buyer. That is why having a broker immersed in the industry is important and can speed up the process. They will be able to get your business out to the right potential buyers. Some of the offers presented will be a quick no, while others will take some considering. Keep your valuation and expectations in mind. Once you’ve selected the offer or counteroffer you would like to accept, a Purchase Agreement will be signed by all parties. At this time an earnest money deposit will be placed in escrow and the buyer’s will be given due diligence to verify the business financials and other information presented. Token Title offers escrow services nationwide. After the due diligence has been given, you are ready to sign the final documents, take a deep breath and celebrate. Please let us know if you have any questions or if we can be of assistance.
Selling your marijuana related business is time consuming and can be an overwhelming process. Having professionals in your corner to help you navigate through it can help alleviate the burden and streamline the process.